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Weekly Market Commentary 24th Feb 2014


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Hello All,

Today marks the first complete month of our weekly newsletter service and we hope it has helped you in making successful and profitable trades.

We started this more as a pilot service and judging by your overwhelming response and eager anticipation for our newsletter every Monday, we have decided to continue with this service for foreseeable future.

Since we present weekly calls, some of our day/swing trading clients have shown interest in our technical analysis expertise and have enquired about specific stocks.

Please see we offer another specialized service for such clients at a very nominal charge wherein we give them exact entry levels, exact target levels and exact stop loss levels for stocks of their liking. Not only that, we even guide such clients on whether to enter a trade or stay out of it.

Feel free to contact us if you would also like to avail this service.

Without further delay, please find as attached market commentary for this week.

Wishing all of you happy trading!
Team - Marwah Financial

Published in: Economy & Finance
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Weekly Market Commentary 24th Feb 2014

  1. 1. Weekly Commentary 2/24/2014 Technical View of Indices Nifty Once again our Nifty & BankNifty trading strategies were profitable and both traded within the levels which we had specified last week. A close above 6125 has ensured that Nifty is heading towards 6200. Let us evaluate Nifty’s daily chart in detail to check out important levels and formulate trading strategy: In This Issue  We will be covering technical view of Nifty and BankNifty for the coming week as well as give trading strategies for these indices to come out on the top and minimize losses. We will also be giving some stock recommendations on the basis of technical analysis. As can be seen from the daily chart, Nifty is still trading in a range but now important levels have become 6100 and 6220. FIIs bought deliveries steadily over last week and more buying came in at 6100 levels. This means that Nifty could swiftly move up from here with strong support at 6100. Keeping this in mind, our trading strategy for the coming week will be: a) We will recommend going long in Nifty rather than going short. Go long at current levels of Nifty or on any fall towards 6100 with stop loss of 6070 with TG1 of 6185, TG2 of 6220 and TG3 of 6300. b) If Nifty breaches 6050, go short with target 1 6000, target 2 5975 with stop loss 6080.
  2. 2. Always remember to keep stop losses while trading in order to minimize losses and always book profits at suggested levels or keep trailing stop losses to maximize returns. Bank Nifty BankNifty moved more than 600 points from its strong support level of 10000 and bias is still positive. Let us evaluate its chart to formulate trading strategy for this week: a) Go long in banknifty with target 1 of 10800. Any breach of this resistance will take Banknifty to 11200. Trade with a strong stop loss of 10380. b) Go short if BankNifty breaches 10350 for target 1 10200 and target 2 10000 with stop loss at 10400 level. Stock Picks Very important: Remember to trade with no more than 2 lots at one time. Whenever you buy or sell a stock, remember to place a stop loss immediately. This ensures mental preparedness. Also, our research and recommended levels ensure that you get good risk to reward ratios. Therefore, please ensure that you do not enter the stock if it is not in our suggested price range. Secondly, always make sure that you book some profits at different target levels and start placing trailing stop losses as per your comfort levels.
  3. 3. Last Week’s Picks Both our picks of AXISBANK and HDFC moved as per our analysis and we booked profits at all recommended levels in both the stocks. This Week’s Picks 1. Our first pick for the week is ALBK (Allahabad Bank). Stock has seen good buying at low levels and is poised for a good correction. Current Market Price: 73.9 Recommended Action: Go Long in 73.5-74.20 range Stop Loss Price: 71.80 Target 1: 77 Target 2: 80 Target 3: 85 Timeframe: 1-2 weeks. 2. Our second pick is also a bank i.e SBI (State Bank of India). It has seen good buying at 1460-1480 levels and is poised for a big up move. Go Long at 1490-1505 levels with stop loss at 1470 TG1 1542 TG2 1585 TG3 1610 Timeframe: 1-2 weeks Disclaimer: This document has been prepared by technical analysis team of Marwah Financial®. This document is prepared for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it deems necessary to arrive at an independentevaluation of an investment in the securities of companies referred to in this document including the merits and risks involved. The investments discussed or views expressed may not be suitable for all investors.